The Missing Middles - Summary Report - Segmenting Enterprises to Better Understand Their Financial Needs

Small and Growing Businesses (SGBs) contribute to significant and positive impact on the development of emerging and frontier markets. They create jobs, contribute to inclusive economic growth, provide access to essential goods and services to underserved populations, and spark innovative technologies and business models. SGBs seek external financing for a range of purposes—to support early stage growth, expand operations, finance working capital, and acquire new assets—but struggle to access forms of capital that meet their needs. SGBs are also extremely diverse – and in order to address the SGB financing gap, there is a need to better understand and dissect this huge and diverse market – and identify the financing solutions that can be scaled up to address the distinct financing needs of different types of SGBs. This is a full report produced by DGGF, Collaborative for Frontier Finance, Omidyar Network and Dalberg Advisors, that provides a segmentation framework with the aim of helping investors, intermediaries, and entrepreneurs to better navigate the complex landscape of SGB investment in frontier and emerging markets.